Company Registration No. 00191194 (England and Wales)
KEPSTON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
KEPSTON LIMITED
COMPANY INFORMATION
Directors
Mr B D Millage
Mrs A S Taylor
Secretary
Mrs A S Taylor
Company number
00191194
Registered office
Units 13-15
Western Way
Wednesbury
West Midlands
WS10 7BW
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
KEPSTON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
KEPSTON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 1 -
The directors present the strategic report for the year ended 30 June 2021.
Fair review of the business
The principal and continuing activities of the company are jig and general grinding, furnace brazing and heat treatment.
The company was pleased to report a 2.1% increase in the gross profit margin despite substantial investments in both capital and personnel that were made during the year. Operating loss was £158,279 compared with £94,738 profit in 2020 and this was mainly attributable to the increase in power and utility costs.
At 30 June 2021 the company had shareholders' funds of £4,830,927, distributable reserves of £4,749,928 and current assets in excess of its current liabilities by £2,489,272. The directors therefore believe the company's position at the year end to be satisfactory.
Principal risks and uncertainties
The directors have assessed the main risk facing the company to be continued competitive pressure on volumes and margins. The directors remain committed to mitigating this risk and developing business further through continued investment in people, the efficiency of company operations and by consistently developing innovative customer focused solutions. The policy of the company will continue to be that of providing the very highest standards and best possible service to its customers to develop business in line with that required to support the range of products it provides.
Key performance indicators
Key performance indicators are used to measure and evaluate company performance against targets and monitor various activities throughout the company. The main key performance indicators employed in the company are:
-
Turnover levels (by product and market)
-
Profit/(loss) levels (contribution, gross margin and net margin)
-
Debtor days
The board monitor these on a monthly basis against budgets.
Mr B D Millage
Director
3 February 2022
KEPSTON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2021.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B D Millage
Mrs A S Taylor
Auditor
The auditor, Edwards, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Other matters
On the 11th of March 2020, the World Health Organisation officially declared COVID-19, the disease caused by novel coronavirus, a pandemic.
The company took advantage of various government schemes in order to minimise any lasting impact and to ensure the going concern status of the company.
Management
continue to
closely monitor the evolution of this pandemic, including how it may affect the company, the economy and the general population
further into the future
. We currently have an appropriate response plan in place, and we will continue to monitor and assess the ongoing development and respond accordingly.
On behalf of the board
Mr B D Millage
Director
3 February 2022
KEPSTON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
KEPSTON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEPSTON LIMITED
- 4 -
Opinion
We have audited the financial statements of Kepston Limited (the 'company') for the year ended 30 June 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 June 2021 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
KEPSTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEPSTON LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Taxation legislation and Health & Safety compliance.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the override of controls by management
,
inappropriate treatment of non-routine transactions and areas of estimation uncertainty
.
Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and income transactions and review of accounting estimates for biases.
KEPSTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEPSTON LIMITED
- 6 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
David Webb FCA (Senior Statutory Auditor)
For and on behalf of Edwards
3 February 2022
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
KEPSTON LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2021
- 7 -
2021
2020
Notes
£
£
Turnover
2
5,297,170
5,282,965
Cost of sales
(3,259,162)
(3,286,721)
Gross profit
2,038,008
1,996,244
Distribution costs
(183,119)
(206,757)
Administrative expenses
(2,013,168)
(1,694,749)
Operating (loss)/profit
3
(158,279)
94,738
Interest receivable and similar income
6
453
3,218
Interest payable and similar expenses
7
(34,284)
(31,688)
(Loss)/profit before taxation
(192,110)
66,268
Tax on (loss)/profit
8
32,301
(32,000)
(Loss)/profit for the financial year
(159,809)
34,268
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KEPSTON LIMITED
BALANCE SHEET
AS AT
30 JUNE 2021
30 June 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,096,904
4,310,259
Current assets
Debtors
11
1,993,617
1,808,376
Cash at bank and in hand
1,644,410
752,985
3,638,027
2,561,361
Creditors: amounts falling due within one year
12
(1,148,755)
(898,866)
Net current assets
2,489,272
1,662,495
Total assets less current liabilities
5,586,176
5,972,754
Creditors: amounts falling due after more than one year
13
(300,249)
(497,018)
Provisions for liabilities
Deferred tax liability
15
455,000
485,000
(455,000)
(485,000)
Net assets
4,830,927
4,990,736
Capital and reserves
Called up share capital
17
39,784
39,784
Capital redemption reserve
41,215
41,215
Profit and loss reserves
4,749,928
4,909,737
Total equity
4,830,927
4,990,736
The financial statements were approved by the board of directors and authorised for issue on 3 February 2022 and are signed on its behalf by:
Mr B D Millage
Director
Company Registration No. 00191194
KEPSTON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2019
39,784
41,215
4,875,469
4,956,468
Year ended 30 June 2020:
Profit for the year
-
-
34,268
34,268
Balance at 30 June 2020
39,784
41,215
4,909,737
4,990,736
Year ended 30 June 2021:
Loss for the year
-
-
(159,809)
(159,809)
Balance at 30 June 2021
39,784
41,215
4,749,928
4,830,927
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 10 -
1
Accounting policies
Company information
Kepston Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Units 13-15, Western Way, Wednesbury, West Midlands, WS10 7BW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Kepston Holdings Limited.
These consolidated financial statements are available from its registered office,
Unit 1, Coppice Lane, Aldridge, Walsall, West Midlands, WS9 9AA.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 11 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
2% straight line
Plant and machinery
10% - 25% reducing balance
Fixtures, fittings and equipment
10% - 25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's
balance sheet
when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.
Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.11
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.
Relevant t
ransactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 14 -
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sales
5,297,170
5,282,965
2021
2020
£
£
Other significant revenue
Interest income
453
3,218
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
5,279,927
5,250,642
Europe
17,243
32,323
5,297,170
5,282,965
3
Operating (loss)/profit
2021
2020
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,400
14,500
Depreciation of owned tangible fixed assets
302,520
287,384
Depreciation of tangible fixed assets held under finance leases
132,229
139,918
(Loss)/profit on disposal of tangible fixed assets
394,108
(29,415)
Cost of stocks recognised as an expense
628,876
640,586
Operating lease charges
171,244
199,919
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production
49
53
Administration
19
21
Total
68
74
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
4
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
2,033,191
2,120,605
Social security costs
161,232
164,385
Pension costs
97,297
76,548
2,291,720
2,361,538
5
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
100,341
101,180
Company pension contributions to defined contribution schemes
5,634
3,500
105,975
104,680
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
453
3,218
7
Interest payable and similar expenses
2021
2020
£
£
Interest on finance leases and hire purchase contracts
34,284
31,688
8
Taxation
2021
2020
£
£
Current tax
Adjustments in respect of prior periods
(2,301)
Deferred tax
Origination and reversal of timing differences
(30,000)
32,000
Total tax (credit)/charge
(32,301)
32,000
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
8
Taxation
(Continued)
- 16 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
(Loss)/profit before taxation
(192,110)
66,268
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(36,501)
12,591
Tax effect of expenses that are not deductible in determining taxable profit
500
3,889
Adjustments in respect of prior years
(2,301)
Group relief
6,195
15,520
Tax effect of enhanced capital allowances
(194)
Taxation (credit)/charge for the year
(32,301)
32,000
9
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2020 and 30 June 2021
211,766
Amortisation and impairment
At 1 July 2020 and 30 June 2021
211,766
Carrying amount
At 30 June 2021
At 30 June 2020
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 17 -
10
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2020
578,229
6,503,331
798,799
151,779
8,032,138
Additions
76,214
32,657
156,044
264,915
Disposals
(2,291,705)
(133,201)
(2,424,906)
At 30 June 2021
578,229
4,287,840
831,456
174,622
5,872,147
Depreciation and impairment
At 1 July 2020
105,460
3,103,684
445,757
66,978
3,721,879
Depreciation charged in the year
8,504
356,934
37,799
31,512
434,749
Eliminated in respect of disposals
(1,308,862)
(72,523)
(1,381,385)
At 30 June 2021
113,964
2,151,756
483,556
25,967
2,775,243
Carrying amount
At 30 June 2021
464,265
2,136,084
347,900
148,655
3,096,904
At 30 June 2020
472,769
3,399,647
353,042
84,801
4,310,259
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and machinery
795,630
1,070,444
Motor vehicles
138,597
65,212
934,227
1,135,656
Depreciation charge for the year in respect of leased assets
132,229
139,918
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
846,731
832,130
Corporation tax recoverable
2,315
Amounts owed by group undertakings
253,340
253,340
Amounts owed by related parties
705,353
430,448
Other debtors
19,741
145,816
Prepayments and accrued income
166,137
146,642
1,993,617
1,808,376
12
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
14
259,901
357,574
Trade creditors
486,244
327,935
Taxation and social security
187,087
77,650
Other creditors
12,563
12,818
Accruals and deferred income
202,960
122,889
1,148,755
898,866
Net obligations under hire purchase contracts are secured on the assets to which they relate.
13
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
14
300,249
497,018
Net obligations under hire purchase contracts are secured on the assets to which they relate.
14
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
259,901
357,574
In two to five years
300,249
497,018
560,150
854,592
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 19 -
15
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
455,000
560,000
Tax losses
-
(75,000)
455,000
485,000
2021
Movements in the year:
£
Liability at 1 July 2020
485,000
Credit to profit or loss
(30,000)
Liability at 30 June 2021
455,000
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,297
76,548
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
The unpaid contributions outstanding at 30 June 2021, included in other creditors are £12,538 (2020 - £12,793).
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
39,784
39,784
39,784
39,784
KEPSTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 20 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
172,840
174,000
Between two and five years
351,380
458,790
In over five years
110,000
150,000
634,220
782,790
19
Capital commitments
Amounts contracted for but not provided in the financial statements:
2021
2020
£
£
Acquisition of tangible fixed assets
-
8,500
20
Related party transactions
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
Mr
B
D
Millage
, director, is also a director of
a number of related companies with which the company have traded with. During the year, the company was charged management charges of £81,579 (2020 - £81,579) by these related parties and advanced loans amounting to £274,905 (2020 - £430,448). The loans are interest free and have no set repayment date.
I
ncluded within
debtors
at 3
0 June
20
21
are amounts of £958,693 (2020 - £683,788) owed by related companies.
21
Ultimate controlling party
Mr B D Millage is considered to be the ultimate controlling party by virtue of his controlling interest in the issued share capital of Kepston Holdings Limited, the immediate and ultimate controlling party.
2021-06-30
2020-07-01
false
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
Mr B D Millage
Mrs A S Taylor
Mrs A S Taylor
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